Activist hedge fund Elliott Management has made proposals to restructure Hyundai Motor Group (HMG), after forcing the car manufacturer to abandon its plans.
Elliott, which holds $1.5bn (£1.16bn) of shares in the group, has called on Hyundai to install a committee to steer restructuring plans and discuss shareholder returns and board makeup.
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"Despite our repeated call for enhanced capital returns, optimised financial structure, and transparent governance structure that received support from both shareholders and the market, HMG has yet to take any substantive steps to address the concerns that continue to burden HMG and its share value," the New York -based hedge fund said in a letter to Hyundai directors, written in August but made public today.
Hyundai rejected the proposals, Reuters reported, saying the committee would break “fair disclosure rules, which prevent us from sharing material confidential information about the company and its businesses to only a subset of our shareholders”.
The South Korean conglomerate was pushed to drop its restructuring proposals in May after Elliott, and other shareholders, opposed plans to switch group management from father to son.
In a statement released today Elliott said: "Despite our best efforts, Elliott has been unable to engage in any productive discussion with HMG since then."
City A.M. has contacted Hyundai for comment.